Anyone holding an active bank account can easily perform instant transactions by simply using their mobile phone, it said in a release.

Flipkart CEO Binny Bansal said payments has been one of the biggest hurdles for mass adoption of online shopping in India, adding, UPI has the potential of transforming theentire payments ecosystem in the country.

The acquisition of PhonePe is in line with Flipkart's focus on driving innovation on the payments front, he said.

Nigam said PhonePe's mission is to significantly improve the online and offline digital payments experience for millions of Indian customers.